Wednesday, June 2, 2010

Bearish on Bonds, Bullish on Stocks?

Long-term bonds Government bonds average 2.1% (5-year t-bond) to 4.2% (30-year t-bond), the Dow Jones earnings yield is near 7% (6.58% with the Dow at 10,132), not including dividends. This puts the Price/Earnings ratio of the Dow at 15.2.

investorsfriend.com

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